The Paris Stock Exchange is expected to rise slightly at the opening and should operate in a calm market due to the absence of many investors for the end-of-year holidays.
The futures contract for the flagship CAC 40 index rose by 0.34% around forty minutes before the opening of the meeting. On Wednesday, after four days of closing, the flagship CAC 40 index closed at 7,571.82 points (+3.00 points).
During the meeting, few publications are expected apart from some real estate data in the United States. On Friday, the market will take a look at inflation in Eurozone countries.
The period between Christmas and New Year is not generally known for its flood of market-influencing news, comments Stephen Innes, analyst at SPI AM.
The analyst, however, highlights movements in American ten-year bond rates on Wednesday, bringing them below the 3.80% mark, their lowest level since July.
The rate on the French ten-year bond fell to 2.40% on Wednesday, closing at its lowest since December 2022.
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The recent surge in stock and bond purchases is mainly linked to the anticipation of key rate cuts expected from the Federal Reserve (Fed), explains Stephen Innes.
At the end of the latest monetary policy meetings, the Fed and the European Central Bank (ECB) chose to keep their key rates unchanged, but the market is now betting on a central scenario which would include six rate cuts in 2024, while Fed members officially expect only half, on average.